Koninklijke Ahold Delhaize N.v. · EURONEXT:AD
Koninklijke Ahold Delhaize — Q2 2022 Earnings Presentation
26 slides from Koninklijke Ahold Delhaize's earnings presentation, Aug 10, 2022
Slide 1: Ahold Delhaize Q2 2022 Results
Q2 2022 Ahold Delhaize Results August 10, 2022 Ahold Delhaize – Q2 2022 Results
Slide 2: Cautionary notice
Cautionary notice This communication includes forward-looking statements. All statements other than statements of historical facts may be forward-looking statements. Words and expressions such as expects, growth, increase, intention, will, revisit, projected, from 2022 to 2025, for the next 4 years,
Slide 3: Welcome
Welcome JP O’Meara SVP Investor Relations Ahold Delhaize – Q2 2022 Results 3
Slide 4: Ahold Delhaize delivers resilient performance in Q2
• Driven by our €850 million Save For Our Customers program, our brands are absorbing cost increases for customers, introducing more entry-price products, expanding high quality own-brand assortments and delivering personalized value through loyalty programs • Q2 Group net sales increased 6.4% at co
Slide 5: Q2 2022 Business Highlights
Q2 2022 Business Highlights Frans Muller, President & CEO Ahold Delhaize – Q2 2022 Results 5
Slide 6: Proactively and visibly supporting customers to manage their spending efficiently
Proactively and visibly supporting customers to manage their spending efficiently Ahold Delhaize – Q2 2022 Results 6
Slide 7: Ongoing Save For Our Customer programs support activities to invest
Ongoing Save For Our Customer programs support activities to invest to keep shelf prices as low as possible Introducing more entry-priced Expanding our high-quality, Increasingly personalized loyalty product solutions in stores and healthy and own-brand programs offer competitive and online assortme
Slide 8: Strong portfolio delivers resilient Q2 performance
Strong portfolio delivers resilient Q2 performance… Strengthening our positions Net Sales €21,445 mln vs LY constant rates +6.4% Diluted Underlying EPS €0.59 vs LY current rates +11% Ahold Delhaize – Q2 2022 Results 8
Slide 9: 4 priorities for the next 4 years
4 priorities for the next 4 years For customers For operations For our portfolio For Health & Sustainability Serve Accelerate Create the omnichannel Lead customers with the ecosystem for the transformation deeper (digital) transformation & smarter continue to be the into a healthy & relationships cu
Slide 10: Highlights & Outlook: Customer Priority
• Albert Heijn launched their 'Best from the Netherlands’ (‘Lekkerste uit Highlights & Outlook: Nederland’) mission to help customers understand - ‘Make better food Customer Priority accessible for everyone’ and how they can make healthier choices • Delhaize implemented ‘Little Lions’ with price red
Slide 11: Highlights & Outlook: Operational Priority
Highlights & Outlook: • ADUSA Supply Chain successfully transitioned the York, PA automation filled distribution center into the self-managed network. This brings our Operational Priority total number of network facilities to 22 • ADUSA Supply Chain implements new solution for all direct to store de
Slide 12: Highlights & Outlook: Healthy & Sustainable
Highlights & Outlook: • Ahold Delhaize maintained its MSCI ESG “AA” rating with improvements noted in several criteria Healthy & Sustainable • Ahold Delhaize published its second Human Rights Report • The GIANT Company, Giant Food, Albert Heijn, Albert, Alfa Beta and Delhaize Serbia all released rep
Slide 13: Ahold Delhaize suspends intention to sub-IPO bol.com in 2022
Ahold Delhaize suspends intention to sub-IPO bol.com in 2022, will revisit when market conditions more conducive Committed to further unlocking value for bol.com and Ahold Delhaize Value and potential of bol.com, underpinned by its ongoing strong market share gains Detailed review of bol.com's
Slide 14: Ahold Delhaize Increases 2022-2025 Free Cash Flow Guidance
Ahold Delhaize Increases 2022- 2025 Free Cash Capex as % of sales Free Cash Flow € billion Flow Guidance ~3.5% ~7.5bn >6bn Automation ~3% Omnichannel store remodels Investor Day 2021 Revised Plan Investor Day 2021 Revised Plan Climate change 2022 - 2025 2022 - 2025 2022 - 2025 2022 - 2025 Monetizati
Slide 15: Q2 2022 Financial Highlights
Q2 2022 Financial Highlights Natalie Knight, Chief Financial Officer Ahold Delhaize – Q2 2022 Results 15
Slide 16: Second Quarter results 2022 Underlying Performance
Comparable Sales Growth excl. gas 4.7% Net sales U.S. 6.4% EU 1.8% €21,445 mln Second vs LY constant rates Quarter 6 .4% Net Consumer Online Sales1 results €2,669 mln 2022 Underlying vs LY constant rates operating income 4.8% €880 mln Underlying operating margin vs LY constant rates (2.9%) 4.1% Unde
Slide 17: Second Quarter results 2022 IFRS-Reported Results
Net sales Second €21,445 mln vs LY actual rates Online Sales Quarter 15.0 % €2,028 mln results vs LY actual rates 2022 IFRS reported 11.9% operating income €895 mln IFRS reported operating margin vs LY actual rates IFRS-Reported 9.6% 4.2% Results vs LY actual rates (0.2) pts Income from continuing D
Slide 18: Comparable sales growth trends by region
Comparable Actuals excluding gas Sales Growth Comparable sales growth trends by region4.7% excl. gas Ex weather/calendar Ex. Gas U.S. Europe 6.4% 6.4% 1.8% 5.5% 4.8% 5.0% 3.7% 3.9% 3.3% 3.1% 2.9% 2.8% 2.9% 2.4% 1.9% 1.8% 1.8% 1.0% 0.9% 1.1% 0.2% -0.2% -1.5% -1.5% -2.4%* -3.1% Q2 2021 Q3 2021 Q4 2021
Slide 19: Highlights: United States
Highlights: United States • Net sales grew 7.7% at constant rates, 22.1% at actual rates to €13.6 billion • 16.4% online sales growth in Q2 (constant rates); building on top of 61.0% growth in the same quarter last year • Underlying operating margin was 4.7%, down 0.3 percentage points versus last y
Slide 20: Stop & Shop announced a $140 million targeted investment for New York City stores
Stop & Shop announced a $140 million targeted investment for New York City stores over the next two years Ahold Delhaize – Q2 2022 Results 20
Slide 21: Highlights: Europe
Highlights: Europe • Net sales were €7.9 billion, an increase of 4.2% at constant exchange rates and 4.5% at actual exchange rates • Q2 Europe comparable sales excluding gasoline increased 1.8% • Underlying operating margin was 3.4% compared to 4.2% in the prior year due to cost inflation, significa
Slide 22: Highlights: bol.com
Highlights: bol.com • Bol.com gross merchandise value was €1.3 billion in Q2 2022 down 1.7% compared to the year ago quarter, when growth was over 22% • Bol.com platform partner sales increased 2% in Q2 and reaches milestone of 50,000 platform partners in August • Bol.com added an estimated 1.3 poin
Slide 23: Initiatives to boost European performance
Initiatives to boost European performance Driving volume, market share and customer loyalty with dedicated everyday low-price programs New joint Central and Southern European strategy Doubling and operating model leveraging brand proximity down on with common solutions our Proactive in strengths
Slide 24: Q2 Free Cash Flow driven by operations and working capital
Q2 Free Cash Flow driven by operations and working capital FCF Q2 2022 vs Last Year, 2020 and 2019 (in €m) -54 129 -10 -8 -13 16 108 533 596 428 486 FCF Q2 FCF Q2 FCF Q2 Operating Changes in Income Net Net Interest Net Lease Dividends FCF Q2 2019 2020 2021 Cash Flow WC Tax Paid Investment Repayment
Slide 25: 2022 Outlook: management increases guidance
2022 2022 Outlook: At least 4% Growth by ≥€850 million management Underlying mid- Save for Our increases Operating Margin single-digit Customers guidance Underlying EPS ~€2.5 billion ~€2.0 billion Capital Expenditures Free Cash Flow1 Our great local brands continue to support customers to manage the
Slide 26: Thank you
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